Tesla posts 2Q loss, prepares factory site

August 1, 2014

PALO ALTO, Calif. - Electric car maker Tesla Motors widened its losses in the second quarter as it prepared for the launch of a new SUV and the construction of a massive new battery plant. Tesla said it started preparing a site for the factory outside Reno, Nevada, last month. But the company said it's still considering sites in California, New Mexico, Arizona and Texas, and won't make a final decision for several months.

The Palo Alto, California-based company reported a loss of $61.9 million, or 50 cents per share, compared with a loss of $30.5 million, or 26 cents per share, in the same quarter a year ago.

Tesla said it spent more on engineering for its Model X SUV, which is scheduled to go into production early next year. Tesla is building a new final assembly line and making other adjustments so it can build both its Model S sedan and the Model X at the same Fremont, California, factory.